1-1 By: Patterson S.B. No. 325
1-2 (In the Senate - Filed January 25, 1995; January 26, 1995,
1-3 read first time and referred to Committee on Economic Development;
1-4 April 12, 1995, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 6, Nays 0; April 12, 1995,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 325 By: Patterson
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to payment of wages by electronic transfer.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 61.017, Labor Code, is amended to read as
1-13 follows:
1-14 Sec. 61.017. Delivery of Payment. (a) An employer shall
1-15 pay wages through a means authorized by this section.
1-16 (b) An employer may pay wages by:
1-17 (1) delivering them to the employee at the employee's
1-18 regular place of employment during regular employment hours;
1-19 (2) delivering them to the employee at a time and
1-20 place agreed on by the employer and employee;
1-21 (3) sending them to the employee by registered mail,
1-22 to be received by the employee not later than payday;
1-23 (4) delivering them in a manner similar to a manner
1-24 specified by Subdivision (1), (2), or (3) to a person designated by
1-25 the employee in writing; or
1-26 (5) delivering them to the employee by any reasonable
1-27 means authorized by the employee in writing.
1-28 (c) If an employee maintains an account that qualifies for
1-29 electronic funds transfer at a financial institution, an employer
1-30 may pay wages to that employee through the electronic transfer of
1-31 the wages to the employee's account as follows:
1-32 (1) an employee may elect to have a portion of the
1-33 wages paid by electronic funds transfer to an account at one
1-34 financial institution and the remainder of the wages paid by
1-35 electronic funds transfer to an account at a different institution;
1-36 (2) the employee shall choose which financial
1-37 institution or institutions will receive the wages and in no event
1-38 may the employer require the employee to establish an account at a
1-39 specific financial institution;
1-40 (3) the payment of wages by electronic funds transfer
1-41 shall not involve greater cost to the employee than the payment of
1-42 wages by paper check or warrant;
1-43 (4) if an employee does not maintain an account that
1-44 qualifies for electronic funds transfer, the employer shall not
1-45 require the employee to establish such an account; and
1-46 (5) an employer that desires to pay wages through
1-47 electronic funds transfer shall:
1-48 (A) give written notice to each employee in
1-49 English and Spanish that the employer is adopting an electronic
1-50 funds transfer payroll system, including a statement, in boldface
1-51 type of a minimum size of 10 points, that the employee may choose
1-52 the financial institution to receive the payment of wages and in no
1-53 event may the employer require the employee to establish an account
1-54 if the employee does not currently maintain an account that
1-55 qualifies for electronic funds transfer; and
1-56 (B) obtain from each employee who maintains an
1-57 account that qualifies for electronic funds transfer the
1-58 information required in order to make payment of wages
1-59 electronically to the employee's account.
1-60 SECTION 2. The importance of this legislation and the
1-61 crowded condition of the calendars in both houses create an
1-62 emergency and an imperative public necessity that the
1-63 constitutional rule requiring bills to be read on three several
1-64 days in each house be suspended, and this rule is hereby suspended.
1-65 * * * * *
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